Mumbai, Nov 4 (IANS) Indian equity benchmarks opened on a subdued note on Wednesday after extending gains for four consecutive sessions, tracking mixed global cues as Asian markets faced pressure from technology stocks amid concerns over AI spending.
Sensex opened at 76,853.11, down 64.74 points or 0.08 per cent, while Nifty was at 23,742.25, down 68.60 points or 0.29 per cent.
In early deals, sectoral indices traded mixed with broad-based weakness as Nifty Consumer Durables, Nifty Realty and Nifty IT declined up to 0.79 per cent. Meanwhile, metal, energy, private bank and PSU bank indices were also in the red zone.
On the gaining side, healthcare and pharmaceuticals indices showed resilience with Nifty 500 Healthcare, Nifty Healthcare Index and Nifty Pharma jumped up to 0.23 per cent.
Analysts said there is a distinct change in market mood driven by reversal in foreign institutional investor (FII) stance.
FIIs have been buyers in five out of last six trading days, buying stocks worth Rs 18,661 crore.
“Sustained selling by FIIs have been weighing on the market for last two years. This is changing now. Buying volume is increasing. Good corporate earnings and attractive valuations in large-caps is providing fundamental support to rally. Weakening of AI trade also facilitated return of FIIs,” experts said.
They added the rally is likely to be led by largecap shares with potential to attract big FII flows and can sustain on short covering, with leading financials having more room to move up.
For Nifty, the index continues to trade above its 50-day EMA near 23,196, with RSI at 66.59 indicating strong bullish momentum, though profit booking cannot be ruled out., according to the market experts.
PCR improved to 1.30. Immediate support is seen at 23,500-23,600, while resistance at 24,000-24,200 with 200-day EMA near 23,904 as intermediate hurdle.
On Tuesday, FIIs strengthened buying for third straight session with net purchases of Rs 6,836 crore, while domestic institutional investors (DIIs) extended selling streak to three sessions with net outflows of Rs 3,678 crore.
In addition, US markets closed higher led by Nasdaq as AI heavyweights rebounded ahead of US midterm results, while Apple fell after disappointing earnings.
–IANS
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